Fidelity progressing with J Alexander's merger
Fidelity National Financial has moved closer to acquiring J Alexander by taking control of almost 74 per cent of its stock.
Fidelity National Financial's (FNF) planned takeover of J Alexander Corporation has taken a step closer after FNF took control of the majority of J Alexander stock.
It now holds just under 74 per cent of the US dining chain's stock, which equates to enough shares for a merger to go ahead.
The merger will result in J Alexander becoming a wholly-owned subsidiary of FNF, which specialises in providing title insurance but has been diversifying into the restaurant business and other operations.
It is set to acquire the remaining shares in a second-round tendering offering, which is expected to expire next Wednesday.
In a statement, president and chief executive officer of J Alenxader Lonnie Stout II said the firm is "pleased with the successful completion of the first step of the transaction with FNF and believe it represents a significant achievement for our shareholders".
Both companies are likely to have sought advice from merger and acquisition consultants to ensure they get the best possible outcome from the merger and FNF chief executive George Scanlon welcomed the news J Alexander will be joining the "FNF family".
Posted by David Gleck
Source: Fidelity National Financial press release, September 20th